While 33,000 Boeing workers remain on strike, demanding a 40 percent wage increase and other benefits, the aviation company is reportedly planning to cut 17,000 jobs. This move would reduce about 10 percent of its global workforce.
The strike has been ongoing for approximately a month, significantly impacting the production of the 737 MAX and 777 models, among other jets. Boeing is expected to incur a loss of around $5 billion in Q3 due to the work stoppage, with losses estimated at about $1 billion per month.
Kelly Ortberg, Boeing’s CEO, has informed employees that the company’s financial challenges must be addressed promptly and with a focused strategy. This process will likely require restructuring to align operations with financial goals, which includes reducing the workforce by 10 percent. Additionally, the company may need to consider selling stocks and seeking funding to stabilize its finances.
The layoffs will affect a range of employees, including senior executives and managers. Furthermore, the strike has caused delays in delivering the 777X by 12 months.
